Welspun Living Ltd (WELSPUNLIV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

K P R Mill Ltd

V2 Retail

Arvind Ltd

Vardhman Textile

Page Industries

Trident

Trent

Vedant Fashions

Welspun Living

Alok Industries

Aditya Bir. Fas.

Why is Welspun Living Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -2.50% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

PAT(Q) At Rs 12.98 cr has Fallen at -90.4% (vs previous 4Q average)
ROCE(HY) Lowest at 9.04%
OPERATING PROFIT TO INTEREST (Q) Lowest at 3.54 times

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.95% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.01% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Welspun Living for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Welspun Living

-18.07%

-0.39

46.69%

Sensex

4.67%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.78%

EBIT Growth (5y)

-2.50%

EBIT to Interest (avg)

4.59

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

1.29

Tax Ratio

24.13%

Dividend Payout Ratio

1.43%

Pledged Shares

Institutional Holding

13.56%

ROCE (avg)

12.57%

ROE (avg)

12.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.72

EV to EBIT

25.18

EV to EBITDA

15.37

EV to Capital Employed

2.24

EV to Sales

1.52

PEG Ratio

Dividend Yield

1.24%

ROCE (Latest)

8.89%

ROE (Latest)

7.32%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 530.74 Cr

DPS(Y)

Highest at Rs 1.70

DEBT-EQUITY RATIO(HY)

Lowest at 0.56 times

-21What is not working for the Company

PAT(Q)

At Rs 12.98 cr has Fallen at -90.4% (vs previous 4Q average

ROCE(HY)

Lowest at 9.04%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.54 times

PBDIT(Q)

Lowest at Rs 153.33 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.28%

PBT LESS OI(Q)

Lowest at Rs 9.07 cr.

NON-OPERATING INCOME(Q)

is 61.92 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.14

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Here's what is working for Welspun Living

Operating Cash Flow - Annually

Highest at Rs 530.74 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.56 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 1.70

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for Welspun Living

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 9.07 cr has Fallen at -93.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 149.65 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 12.98 cr has Fallen at -90.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 135.30 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 3.54 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 153.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.28%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 9.07 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 61.92 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.14

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)